UW’s $800M would be $516,129 direct costs and (at 55%) $283,871 indirect costs. A reduction from 55% to 15% would reduce indirects by $206,452

The indirect rate is applied to the direct cost, rather than the total cost. Meaning the it isn’t 55% of $800M, but 55% of the direct costs in that total. The equation is DC+(DC*55%)=$800M